The "Rule of 72" says that, at 6% interest, money will double in 14 years. O True O False

Q: What is the present value of $1,000 paid at the end of each of the next 56 years if the interest…

A: Present value is the current worth of the amount deposited or received in future date.

Q: The sum of P1000.00 is invested now and left for 8years, at which time, the principal is withdrawn.…

A: The future value of an amount invested in an account depends on the interest rate and the time…

Q: Using 12 percent simple interest per year, how much interest will be owed on aloan of $500 at the…

A: Interest Rate(R) = 12 Loan Amount(P)=$500 Years(T) = 2

Q: How much will $100 grow to if invested at a continuous compounded interest

A: compounding continuously is calculated by using exponential function e.

Q: 6. If you deposit $4,000 now, $5,000 at the end of 2 years and $6,000 at the end of 5 years into an…

A: The concept of money's time value reveals that any sum currently is worth more as compared to the…

Q: Suppose that $80,000 is invested at 7% interest. Find the amount money in the account after 5 years…

A: The given problem can be solved using FV function in excel. FV function computes amount value in…

Q: Aerospace Dynamics will invest $155,000 in a project that will produce the following cash flows. The…

A: The NPV is used in capital budgeting to make project accept/reject decisions. A higher positive NPV…

Q: Suppose we put $15000 into an account earning 3% interest compounded continuously. How long will it…

A: NPER stands for number of years or periods which is needed to clear or to pay off the loan amount at…

Q: Suppose you owe $600 on your credit card and are paying 14 percent interest. If you pay off the debt…

A: Interest is the amount paid for the usage of the principal borrowed.

Q: 1. At what interest rate will a sum of money triple itself in 10 years time?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If you invest $1700 in an account paying 7% compounded continuously, how much money will be in the…

A: Amount Invested = $1700 Interest Rate = 7% Interest Rate per week(r) = 7%/52 Number of weeks (n)= 65…

Q: what is the payment every​ year

A: To calculate the payment at the end of each we will use below formulaAnnual payment = PV*rWherePV -…

Q: You have decided to buy a perpetual bond. The bond makes one payment at the end of every year…

A: Interest Rate = r = 5%Initial Cost of Bond = ic = $3000

Q: ume that time zero is now and the effective interest rate per year is 14%. 1. What is the present…

A: The given problem can be solved using PV function in excel. PV function computes present value for…

Q: At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years?

A: We use rate function to calculate interest rate

Q: 9) You deposit $200 each month for five years. How much will be in the account after the five years…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Suppose are going to make monthly deposits into an account with an annual interest rate of [8] 2.5%…

A: For calculating the monthly deposit as ordinary annuity; the $1,000,000 amount shall be taken as the…

Q: An investment pays simple interest, and triples in 14 years. What is the interest rate?

A: The sum of money that is charged or gained for the usage of money is known as interest, and it is…

Q: Suppose we are going to make monthly deposits in to an account with an annual interest rate of 4.1%…

A:

Q: 14. Suppose you invest $4000 in a Compound Interest account, at an APR of 3% for 10 years. What is…

A: An interest rate method in which current interest is computed by multiplying the interest rate by…

Q: if the simple interest on $7,000 for 8 years is $3,920, then what is the interest rate.

A: Time value of money is one of the useful concept of finance. It says that a dollar amount invested…

Q: If a person deposits $3,000 at 6% per year simple interest, what compound interest rate would yield…

A:

Q: If you have an investment that is earning 5.5% annually, use the Rule of 72 to estimate how many…

A: Computation:

Q: You have decided to buy a perpetual bond. The bond makes one payment at the end of every year…

A: To calculate the payment at the end of each we will use below formula   Annual payment = PV*r Where…

Q: What is the future value of $1,250.63 for 3 years at an interest rate of 7%?

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: At a 16% interest rate, you will triple your money in approximately years when compounding every six…

A: Future value of money is due to the compounding of interest over the period of time and it is much…

Q: What amount you need to deposit now into an account earning 4.5% every four months if you need to…

A: It has been provided: Time period = 8 years Future value = $45,000 Interest rate = 4.5%…

Q: the rule of 72

A: Given information : Initial investment = $100 Interest rate = 7%

Q: You have decided to buy a perpetual bond. The bond makes one payment at the end of every year…

A: Perpetual bonds do not have a principal payback requirement, in contrast to ordinary bonds, which…

Q: Suppose you have $30000 to invest. The interest rate is 8% compounded continuously. How much can you…

A: The amount that can be withdrawn after 20 years is calculated using following equation Value at the…

Q: Approximately (using the Rule of 72), how many years will it take to double a $3000 investment when…

A: The Rule fo 72 is a model which helps in knowing the number of years it will take to double the…

Q: Describe differences between gross profit, EBIT, and net profit. Also, what is the possibility of…

A: Gross profit, EBIT and Net profit are all important financial line items that can be found in a…

Q: In this problem: How much is the present value of monthly deposits of 500 in 8 years if the interest…

A: The present value of the amount represents the current value of the future cash flows. The…

Q: Suppose that you invest $5,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to…

A:

Q: Assume a 360 day year, when a 48,000, 90 day, 8% interest bearing note payable matures, the total…

A: Total payment = Note + Interest   Interest = $48,000 * 8% * 90/360 Interest = $960

Q: If a person deposits $10,000 at 10% per year simple interest, what compound interest rate would…

A: Compound interest (also known as compounding interest) is the interest on a loan or deposit that is…

Q: 4) Someone invests a constant stream of $1,000 per year at a continuously compounding interest rate…

A: Compound Interest accrues interest on interest. Continuous Compounding is used to when interest is…

Q: How much do you have to deposit today so that beginning 11 years from now you can withdraw ​$12,000…

A: Given, Amount that can be withdrawn from years 11 to 16 is $12000 Additional amount at end of 16 th…

Q: How much will $100 grow to if invested at a continuously compounded interest rate of 8% for 8 years?…

A: Future value = Present value * e^rt Where, r =rate of interest i.e. 8% or 0.08t =time i.e. 8 years

Q: A $2 million deposit earns 7 percent for 13 years. If the account earns 9 percent per year forever…

A: TVM refers to the capacity of money to earn interest because money earned earlier is considered more…

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.